Goldman has signed up Gregory Craig, a former White House counsel who served during the first year of Obama's presidency, according to a report on Politico. Craig was reportedly ousted from his position for pressing to establish a line-in-the-sand deadline for closing the controversial detention center in Guantanamo Bay, according to the report.

Craig, who landed at Skadden, Arps, Slate, Meagher & Flom, will provide "advice and process" to Goldman, and wasn't hired solely for his connections, a source told Politico.

"Following preliminary investigations the FSA has decided to commence a formal enforcement investigation into Goldman Sachs International in relation to recent SEC allegations," the agency stated, noting it will work with the SEC as it conducts its review.

On top of the legal woes in Britain, Goldman may also find itself facing an expensive political firestorm there. Opposition groups are pressuring Prime Minister Gordon Brown to halt the government's use of Goldman's advisory services until U.K. regulators wrap up their investigation, according to a Bloomberg report.